Richter plans no acquisitions, looks to Russia for growth

bbj.hu

Wednesday, April 5, 2006, 14:30

Pharmaceuticals company Richter Gedeon Rt is planning no acquisitions, rather it aims to grow organically relying on its markets in CIS countries while concentrating on generics and high-margin gynecological products as well as original patents, CEO Erik Bogsch said in an interview with internet business portal portfolio.hu published on Tuesday.

Richter's growth will be ensured by the stability of Russia's economy and politics, Bogsch said. Richter has started production at a local unit of a wide range of products at the right time, as many of Richter's drugs have been included on a special list of state-subsidized medicines, and Russians are now able to afford pricier drugs. Bogsch noted that local production was a condition for inclusion of Richter's drugs on the state-subsidized medicines list. Richter's unconsolidated revenue from exports to CIS countries rose 40.1% to $215.9 million in 2005 and accounted for nearly half of total export revenue. Revenue from sales of drugs on Russia's state-subsidized medicines list came to $30 million.

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